Contextual finance in wealth management

Idea: Contextual finance in wealth management of the future in which customers are offered services tailored to their particular circumstances and needs. “Offering products that understand what motivates that person, what their challenges are, and what is preventing them from being successful. The key benefit of embedded WM is that it introduces more context. It matches financial services to context while simultaneoulsy removing friction for the consumer. Wealth managers would be inspired to pay attention to this emerging trend especially as it applies to investing and financial planning.How do I get clients to use wealth management services exactly where they need their daily, weekly ... habits? Digital and stationary. You achieve this through the cooperation of Service Producer - Service Provider - Service Distributer. Inspiration

Chance: (1) Reduce friction: by putting relevatn sertvices in front of customers when and where they need then (2) Need for more personalisation: Create greater persnalsation by leveraging more data and what they know about their known customers (3) New stream of revenue: grow market, generate new revenue with a lower cost of acquisition, allowing firms to cater to specific customer needs.

Target Group: 1. Clients who have not yet come into contact with Wealth Management (Net New Customer)

1. Existing customers: Clients who want to invest in things that are in line with their values. Those who also expect offers to be very strongly tailored to their needs (keyword: hyper personalisation).

2. Customers who get access to WM services in the first place through the offer within the framework of a trusted space or a trusted brand.

   Story: Let's assume that IKEA offers the possibility of paying a part of the purchase value (payback, so to speak) directly into a deposit. Or to put it another way: IKEA pays part of the purchase value directly into a fund for you that invests in the sustainable cultivation of wood. Prerequisite: You open a deposit account with IKEA Bank. The account can be opened digitally (data may already be known because of the IKEA Family Card) or even through a stationary office in the IKEA shop. This case can be the entry point for many people into the world of wealth management. With an average of 12,000 - 16,000 customers per day and per IKEA shop, it shows the scalability that is possible through embedded wealth management. IKEA's website was visited by 417 million people in 2021. The total turnover of IKEA Germany was 5.3 billion euros. Every citizen goes to IKEA on average 8 times a year with an average turnover of 100,- Euro per purchase. And all this takes place in an environment where people are engaged in making their world more beautiful. And embedded in this experience/habit, financial transactions can be linked in a completely different way. IKEA is lifestyle, people have breakfast or lunch in an IKEA shop, they do it all voluntarily because they associate the shopping experience with something positive. And an investment advice/deposit/robo advisor, which can also offer excellent wealth management services with a hyper-personalised offer in this context, is then automatically integrated into the daily habits of every person.

The same or a similar story could be told for a standard existing financial distributors

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